June 15, 2020 - MDT Alert (MFA)

We were able to sell the $4 call on MFA that expires this coming Friday for $0.65.

And today, we can close it for $0.10.

Ordinarily, I would leave the position alone and hold until expiration.

But MFA reports this Thursday and we can capture 85% of the profit on the call that was sold.

My suggestion will be to close the short calls.

Here is how you do it.

Buy to Close June 19th - $4 call for $0.10.

Close the entire short call position. So, if you followed the alert, you would be buying back 10 calls.

Of course, this alert only applies if you sold the June $4 calls.

If you did sell the 10 calls, the cash profit is $550.

If the stock makes a run into earnings, I will suggest you sell more call options.

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